Bare Acts

CHAPTER III RIGHTS AND LIABILITIES OF REGISTERED TRADE UNIONS


15. Objects on which general funds may be spent.—The general funds of a
registered Trade Union shall not be spent on any other objects than the following,
namely:—
(a) the payment of salaries, allowances and expenses to 3
[office-bearers] of the Trade
Union;
(b) the payment of expenses for the administration of the Trade Union, including
audit of the accounts of the general funds of the Trade Union;
(c) the prosecution or defence of any legal proceeding to which the Trade Union or
any member thereof is a party, when such prosecution or defence is undertaken for the
purpose of securing or protecting any rights of the Trade Union as such or any rights
arising out of the relations of any member with his employer or with a person whom the
member employs;
(d) the conduct of trade disputes on behalf of the Trade Union or a ny member
thereof;
(e) the compensation of members for loss arising out of trade disputes;
(f) allowances to members or their dependant on account of death, old age, sickness, accidents
or unemployment of such members;
(g) the issue of, or the undertaking of liability under, policies of assurance on the lives
of members, or under policies insuring members against sickness, accident or
unemployment;
(h) the provision of educational, social or religious benefits for members (including
the payment of the expenses of funeral or religious ceremonies for deceased members)
or for the dependants of members;

1. Clauses (c) and (d) rep. by Act 25 of 1942, s. 2 and the First Schedule.
2. Subs. by Act 42 of 1960, s. 7, for clause ( e).
3. Subs. by Act 38 of 1964, s. 2, for “officers” (w.e.f. 1-4-1965).
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(i) the upkeep of a periodical published mainly for the purpose of discussing questions affecting
employers or workmen as such;
(j) the payment, in furtherance of any of the objects on which the general funds of the
Trade Union may be spent, of contributions to any cause intended to benefit workmen in
general, provided that the expenditure in respect of such contributions in any financial year
shall not at any time during that year be in excess of one-fourth of the combined total of the
gross income which has up to that time accrued to the general funds of the Trade Union
during that year and of the balance at the credit of those funds at the commencement of that
year; and
(k) subject to any conditions contained in the notification, any other object notified by the
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[appropriate Government] in the Official Gazette.
16. Constitution of a separate fund for political purposes.—(1) A registered Trade
Union may constitute a separate fund, from contributions separately levied for or made to that
fund, from which payments may be made, for the promotion of the civic and political interests
of its members, in furtherance of any of the objects specified in sub -section (2).
(2) The objects referred to in sub-section (1) are:—
(a) the payment of any expenses incurred, either directly or indirectly, by a candidate or
prospective candidate for election as a member of any legislative body constituted under 2
[the
Constitution] or of any local authority, before, during, or after the election in connection with his
candidature or election; or
(b) the holding of any meeting or the distribution of any literature or documents in support of
any such candidate or prospective candidate; or
(c) the maintenance of any person who is a member of any legislative body constituted under
2
[the Constitution] or of any local authority; or
(d) the registration of electors or the selection of a candidate for any legislative body constituted
under 2
[the Constitution] or for any local authority; or
(e) the holding of political meetings of any kind, or the distribution of political literature or
political documents of any kind.
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[(2A) In its application to the State of Jammu and Kashmir, references in sub-section (2) to any
legislative body constituted under the Constitution shall be construed as including references to the
Legislature of that State.]
(3) No member shall be compelled to contribute to the fund constituted under sub-section (1);
and a member who does not contribute to the said fund shall not be excluded from any benefits of
the Trade Union, or placed in any respect either directly or indirectly under any disability or at
any disadvantage as compared with other members of the Trade Union (except in relation to the
control or management of the said fund) by reason of his not contributing to the said fund; and
contribution to the said fund shall not be made a condition for Admission to the Trade Union.
17. Criminal conspiracy in trade disputes.—No 4
[office-bearer] or member of a registered
Trade Union shall be liable to punishment under sub-section (2) of section 120B of the Indian Penal
Code (45 of 1860), in respect of any agreement made between the members for the purpose of
furthering any such object of the Trade Union as is specified in section 15, unless the agreement is
an agreement to commit an offence.

1. Subs. by the A.O. 1937, for “G.G in C.”.
2. The words “the Government of India Act” have been successively amended by the A.O. 1937, the A.O. 1950 and Act 42 of
1960 to read as above.
3. Ins. by Act 51 of 1970, s. 2 and the Schedule (w.e.f. 1-9-1971).
4. Subs. by Act 38 of 1964, s. 2, for “officer” (w.e.f. 1-4-1965).
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18. Immunity from civil suit in certain cases.—(1) No suit or other legal proceeding shall be
maintainable in any Civil Court against any registered Trade Union or any 1
[office-bearer] or
member thereof in respect of any act done in contemplation or furtherance of a trade dispute to
which a member of the Trade Union is a party on the ground only that such act induces some other
person to break a contract of employment, or that it is in interference with the trade, business or
employment of some other person or with the right of some other person to dispose of his capital
or of his labour as he wills.
(2) A registered Trade Union shall not be liable in any suit or other legal proceeding in any Civil
Court in respect of any tortious act done in contemplation or furtherance of a trade dispute by an agent
of the Trade Union if it is proved that such person acted without the knowledge of, or contrary to
express instructions given by, the executive of the Trade Union.
19. Enforceability of agreements.—Notwithstanding anything contained in any other law for
the time being in force, an agreement between the members of a registered Trade Union shall not
be void or voidable merely by reason of the fact that any of the objects of the agreement are in
restraint of trade:
Provided that nothing in this section shall enable any Civil Court to entertain any legal
proceeding instituted for the express purpose of enforcing or recovering damages for the breach
of any agreement concerning the conditions on which any members of a Trade Union shall or
shall not sell their goods, transact business, work, employ or be employed.
20. Right to inspect books of Trade Union.—The account books of a registered Trade
Union and the list of members thereof shall be open to inspection by an 1
[office-bearer] or
member of the Trade Union at such times as may be provided for in the rules of the Trade Union.
21. Rights of minors to membership of Trade Unions.—Any person who has attained the
age of fifteen years may be a member of a registered Trade Union subject to any rules of the
Trade Union to the contrary, and may, subject as aforesaid, enjoy all the rights of a member and
execute all instruments and give all acquittances necessary to be executed or given under the
rules.
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* * * * *
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[21A. Disqualifications of office-bearers of Trade Unions.—(1) A person shall be disqualified
for being chosen as, and for being, a member of the executive or any other office-bearer of a registered
Trade Union if—
(i) he has not attained the age of eighteen years;
(ii) he has been convicted by a Court in India of any offence involving moral turpitude and
sentenced to imprisonment, unless a period of five years has elapsed since his release.
(2) Any member of the executive or other office-bearer of a registered Trade Union who, before the
commencement of the Indian Trade Unions (Amendment) Act, 1964 (38 of 1964), has been convicted
of any offence involving moral turpitude and sentenced to imprisonment, shall on the date of such
commencement cease to be such member or office-bearer unless a period of five years has elapsed since
his release before that date.]
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[(3) In its application to the State of Jammu and Kashmir, reference in sub-section (2) to the
commencement of the Indian Trade Unions (Amendment) Act, 1964 (38 of 1964), shall be construed as
reference to the commencement of this Act in the said State.]
22. Proportion of office-bearers to be connected with the industry.—Not less than one-half
of the total number of the 1
[office-bearers] of every registered Trade Union shall be persons
actually engaged or employed in an industry with which the Trade Union is connected:

1. Subs. by Act 38 of 1964, s. 2, for “officer” (w.e.f. 1-4-1965).
2. The proviso omitted by s. 4, ibid. (w.e.f. 1-4-1965).
3. Ins. by s. 5, ibid. (w.e.f. 1-4-1965).
4. Ins. by Act 51 of 1970, s. 2 and the Schedule (w.e.f. 1-9-1971).
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Provided that the 2
[appropriate Government] may, by special or general order, declare that the
provisions of this section shall not apply to any Trade Union or class of Trade Unions specified in the
order.
23. Change of name.—Any registered Trade Union may, with the consent of not less than two-thirds
of the total number of its members and subject to the provisions of section 25, change its name.
24. Amalgamation of Trade Unions.—Any two or more registered Trade Unions may become
amalgamated together as one Trade Union with or without dissolution or division of the funds of such
Trade Unions or either or any of them, provided that the votes of at least one-half of the members of each
or every such Trade Union entitled to vote are recorded, and that at least sixty per cent. of the votes
recorded are in favour of the proposal.
25. Notice of change of name or amalgamation.—(1) Notice in writing of every change of
name and of every amalgamation, signed, in the case of a change of name, by the Secretary and by
seven members of the Trade Union changing its name, and, in the case of an amalgamation, by the
Secretary and by seven members of each and every Trade Union which is a party the reto, shall be
sent to the Registrar, and where the head office of the amalgamated Trade Union is situated in a different
State, to the Registrar of such State.
(2) If the proposed name is identical with that by which any other existing Trade Union has been
registered or, in the opinion of the Registrar, so nearly resembles such name as to be likely to deceive
the public or the members of either Trade Union, the Registrar shall refuse to register the change of
name.
(3) Save as provided in sub-section (2), the Registrar shall, if he is satisfied that the provisions of
this Act in respect of change of name have been complied with, register the change of name in the
register referred to in section 8, and the change of name shall have effect from the date of such
registration.
(4) The Registrar of the State in which the head office of the amalgamated Trade Union is
situated shall, if he is satisfied that the provisions of this Act in respect of amalgamation have been
complied with and that the Trade Union formed thereby is entitled to registration under section 6,
register the Trade Union in the manner provided in section 8, and the amalgamation shall have
effect from the date of such registration.
26. Effects of change of name and of amalgamation.—(1) The change in the name of a
registered Trade Union shall not affect any rights or obligations of the Trade Union or render
defective any legal proceeding by or against the Trade Union, and any legal proceeding which
might have been continued or commenced by or against it by its former name may be continued
or commenced by or against it by its new name.
(2) An amalgamation of two or more registered Trade Unions shall not prejudice any right of any of
such Trade Unions or any right of a creditor of any of them.
27. Dissolution.—(1) When a registered Trade Union is dissolved, notice of the dissolution
signed by seven members and by the Secretary of the Trade Union shall, within fourteen days of
the dissolution, he sent to the Registrar, and shall be registered by him if he is satisfied that the
dissolution has been effected in accordance with the rules of the Trade Union, and the
dissolution shall have effect from the date of such registration.
(2) Where the dissolution of a registered Trade Union has been registered and the rules of
the Trade Union do not provide for the distribution of funds of the Trade Union on dissolution,
the Registrar shall divide the funds amongst the members in such manner as may be prescribed.

1. Subs. by Act 38 of 1964, s. 2, for “officers” (w.e.f. 1-4-1965).
2. Subs. by the A.O. 1937, for “L.G.”.
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28. Returns.—(1) There shall be sent annually to the Registrar, on or before such date as may
be prescribed, a general statement, audited in the prescribed manner, of all receipts and expenditure
of every registered Trade Union during the year ending on the 31st day of 1
[December] next
preceding such prescribed date, and of the assets and liabilities of the Trade Union existing on such
31st day of 1
[December]. The statement shall be prepared in such form and shall comprise such
particulars as may be prescribed.
(2) Together with the general statement there shall be sent to the Registrar a statement
showing all changes of 2
[office-bearers] made by the Trade Union during the year to which the
general statement refers, together also with a copy of the rules of the Trade Union corrected up to
the date of the despatch thereof to the Registrar.
(3) A copy of every alteration made in the rules of a registered Trade Union shall be sent to the
Registrar within fifteen days of the making of the alteration.
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[(4) For the purpose of examining the documents referred to in sub-sections (1), (2) and (3), the
Registrar, or any officer authorised by him, by general or special order, may at all reasonable times
inspect the certificate of registration, account books, registers, and other documents, relating to a Trade
Union, at its registered office or may require their production at such place as he may specify
in this behalf, but no such place shall be at a distance of more than ten miles from the
registered office of a Trade Union.]

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